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Counterexample. After WW2 Germany asked US and other creditors to forgive it's debts because otherwise they won't be able to grow their economy and were at risk
by mempko 7y ago
Counterexample. After WW2 Germany asked US and other creditors to forgive it's debts because otherwise they won't be able to grow their economy and were at risk of further becoming under the influence of the USSR.
You know what the creditors did? They forgave Germany's debts.
So the question is, when Greece made the same argument to Germany, that it can't grow their economy under austerity, why did the Germans refuse to forgive its debts?
You blame the Greek people but it was the German and French banks that lent Greece the money. Why didn't the banks do their du-diligence and refuse to give the loans?
So when Greece got the bailout money, that money went straight back into the German and French banks and left the Greek people holding the bag.